ZeroLend to close after three years; users urged to withdraw funds as team begins orderly wind-down ZeroLend, a multi-chain decentralized lending protocol, announced it will wind down operations after three years, citing unsustainable economics and growing operational risks. In a statement posted by team member Deadshot Ryker, the project said the decision was “difficult” but necessary as liquidity on several supported chains dwindled, some oracle services were discontinued, and security threats increased. Built to bring borrowing and lending markets to emerging chains, ZeroLend gained traction early by supporting networks such as Manta, Zircuit, XLayer and Base. Over time, however, liquidity on many of those chains dried up or became inactive, undermining the protocol’s ability to generate consistent revenue and maintain safe markets. What users need to know now - The team’s top priority is enabling safe withdrawals. Most markets have already been set to 0% loan-to-value (LTV), and users are strongly urged to remove any remaining funds from the platform as soon as possible. - Some assets remain trapped in illiquid or inactive environments. To address that, ZeroLend plans a timelock upgrade to its smart contracts designed to enable redistribution of affected funds and maximize recovery for users. - The team referenced a past incident affecting LBTC suppliers on Base; thanks to an allocation from a LINEA airdrop, affected users will receive partial refunds. Impacted users should contact moderators or submit support tickets to coordinate next steps. Implications for DeFi Traders and liquidity providers will see the closure as the loss of another lending venue—particularly on smaller chains where liquidity is already fragmented. ZeroLend’s shutdown underscores persistent challenges in multi-chain DeFi: thin margins, fragmented liquidity pools, dependency on external infrastructure such as oracles, and heightened security risks. Next steps ZeroLend said it will pursue an orderly and transparent wind-down over the coming weeks, prioritizing user fund recovery and clear communication about contract changes and refunds. Users should monitor the project’s official channels for exact timetables and instructions. Read more AI-generated news on: undefined/news

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